Portugal

Offices attract the most investment in Lisbon

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Actually, this was the most dynamic asset class in the Portuguese market in 2021, attracting 51% of the total amount traded until the end of August, approximately 616 million euros in 18 operations.

The 1st semester of 2021 revealed a growing number of new companies settling in Lisbon, which, despite the impact from the pandemic, indicates that interest in the national property market remains high and there will be major demand from international companies to establish in Portugal.

In fact, the office sector in Lisbon registered an investment volume of 502 million euros, what corresponds to 81,5% of the total amount invested in the city.

Teleworking may bring this benefit to Portugal, particularly Lisbon, as it will be possible for some people to work remotely part of the time, in smaller offices, away from large corporate headquarters in overcrowded cities. This flexibility allows employees to travel to locations that are well connected by air and offer better quality of life and economic benefits, compared to the major European urban centres.

Retail comes in second place. From the beginning of the year until the end of August, 4 deals were closed in Lisbon, altogether amounting to 72 million euros. In terms of asset type, at this stage there is a clear preference among buyers for smaller properties like retail parks, stand-alones, supermarkets and high street shops, while no shopping centres were traded during this period.

To complete the podium, Hotels take the third position. Iberian Property Data registered 3 deals that amount to almost 46 million euros, bringing this asset class a share of 7% of the total amount invested in Lisbon. Despite the damage caused to the operators in the industry (during 2020), the truth is that the last decade recorded substantial growth, and the recovery momentum has already begun. 2022 may be a year with various mergers and acquisitions of tourism assets, and 2023 is expected to come close to the performance achieved in 2019.

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